In 2022, U.S. national health expenditure as a share of its gross domestic product (GDP) reached 17.3 percent, this was a decrease on the previous year. The United States has the highest health spending based on GDP share among developed countries. Both public and private health spending in the U.S. is much higher than other developed countries. Why the U.S. pays so much moreWhile private health spending in Canada stays at around three percent and in Germany under two percent of the gross domestic product, it is nearly nine percent in the United States. Another reason for high costs can be found in physicians’ salaries, which are much higher in the U.S. than in other wealthy countries. A general practitioner in the U.S. earns nearly twice as much as the average physician in other high-income countries. Additionally, medicine spending per capita is also significantly higher in the United States. Finally, inflated health care administration costs are another of the predominant factors which make health care spending in the U.S. out of proportion. It is important to state that Americans do not pay more because they have a higher health care utilization, but mainly because of higher prices. Expected developmentsBy 2031, it is expected that health care spending in the U.S. will reach nearly one fifth of the nation’s gross domestic product. Or in dollar-terms, health care expenditures will accumulate to about seven trillion U.S. dollars in total.

Among OECD member countries, the United States had the highest percentage of gross domestic product spent on health care as of 2023. The U.S. spent nearly 16 percent of its GDP on health care services. Germany, France and Japan followed the U.S. with distinctly smaller percentages. The United States had both significantly higher private and public spending on health compared with other developed countries. Why compare OECD countries?OECD stands for Organization for Economic Co-operation and Development. It is an economic organization consisting of 38 members, mostly high-income countries and committed to democratic principles and market economy. This makes OECD statistics more comparable than statistics of developed and undeveloped countries. Health economics is an important matter for the OECD, even more since increasing health costs and an aging population have become an issue for many developed countries. Health costs in the U.S.  A higher GDP share spent on health care does not automatically lead to a better functioning health system. In the case of the U.S., high spending is mainly because of higher costs and prices, not due to higher utilization. For example, physicians’ salaries are much higher in the U.S. than in other comparable countries. A doctor in the U.S. earns almost twice as much as the average physician in Germany. Pharmaceutical spending per capita is also distinctly higher in the United States. Furthermore, the U.S. also spends more on health administrative costs compare to other wealthy countries.

Current expenditures on health per capita in current US dollars. Estimates of current health expenditures include healthcare goods and services consumed during each year.

Per capita national health expenditures in the United States have increased significantly since 1960. In 2022, national health expenditures amounted to 13.4 thousand U.S. dollars per capita. For comparison, in 1960, per capital expenditures for health stood at 146 U.S. dollars. According to recent data, the U.S. has some of the highest health care costs in the world.

Health care expenditures With increased per capita health expenditures, U.S. health care expenditures as a percentage of the gross domestic product (GDP) have also increased over the decades. Among developed countries, the U.S. has the highest health expenditure as a proportion of the GDP. The high level of health costs in the U.S. may be attributable to high costs for prescribed drugs and health services as well as high administrative costs.

Cost areas A large proportion of all health care spending in the U.S. is attributable to hospital care and physician and clinical services. In recent years, many sectors have seen an increase in health care spending. However, data suggests that prescription drugs have seen some of the most dramatic increases in spending in recent years. The annual prescription drug expenditures in the U.S. reached an all-time high by the end of 2022.

Graph and download economic data for Chain-Type Quantity Index for Real GDP: Health Care and Social Assistance (62) in the United States (USHLTHSOCASSQGSP) from 1997 to 2023 about healthcare, social assistance, quantity index, health, GSP, private industries, education, services, private, industry, GDP, and USA.

Graph and download economic data for Gross Domestic Product: Ambulatory Health Care Services (621) in the United States (USAMBHCNGSP) from 1997 to 2023 about ambulatory, assistance, healthcare, social assistance, health, GSP, private industries, education, services, private, industry, GDP, and USA.

Graph and download economic data for Value Added by Industry: Educational Services, Health Care, and Social Assistance: Health Care and Social Assistance as a Percentage of GDP (VAPGDPHCSA) from Q1 2005 to Q3 2024 about social assistance, value added, health, private industries, education, percent, services, private, industry, GDP, and USA.

This statistic shows a forecast of the U.S. national health expenditure as a percentage of GDP from 2023 to 2032. By 2032, this share is expected to increase up to nearly one-fifth of the national gross domestic product.

United States GDP: 2017p: PCE: Services: Health Care data was reported at 2,814.987 USD bn in 2024. This records an increase from the previous number of 2,667.007 USD bn for 2023. United States GDP: 2017p: PCE: Services: Health Care data is updated yearly, averaging 2,155.249 USD bn from Dec 2007 (Median) to 2024, with 18 observations. The data reached an all-time high of 2,814.987 USD bn in 2024 and a record low of 1,753.978 USD bn in 2007. United States GDP: 2017p: PCE: Services: Health Care data remains active status in CEIC and is reported by Bureau of Economic Analysis. The data is categorized under Global Database’s United States – Table US.A024: NIPA 2023: GDP by Expenditure: Chain Linked 2017 Price: Annual.

Graph and download economic data for Chain-Type Quantity Index for Real GDP: Ambulatory Health Care Services (621) in the United States (USAMBHCQGSP) from 1997 to 2023 about ambulatory, assistance, healthcare, social assistance, quantity index, health, GSP, private industries, education, services, private, industry, GDP, and USA.

The United States has the highest expenditure on health care per capita globally. However, the U.S. has an unique way of paying for their health care where a majority of the expenditure falls upon private insurances. In FY 2023, around one third of all health expenditure is paid by private insurance. Public insurance programs Medicare and Medicaid accounted for 22 and 18 percent, respectively, of health expenditure during that same year.

U.S. health care system

Globally health spending has been increasing among most countries. However, the U.S. has the highest public and private per capita health expenditure among all countries globally, followed by Switzerland. As of 2020, annual health care costs per capita in the United States totaled to over 12 thousand U.S. dollars, a significant amount considering the average U.S. personal income is around 54 thousand dollars.

Out of pocket costs in the U.S.

Aside from overall high health care costs for U.S. residents, the total out-of-pocket costs for health care have been on the rise. In recent years, the average per capita out-of-pocket health care payments have exceeded one thousand dollars. Physician services, dental services and prescription drugs account for the largest proportion of out-of-pocket expenditures for U.S. residents.

United States - Contributions to Percent Change in Real GDP by Industry: Educational Services, Health Care, and Social Assistance was 0.40000 Percentage Points in July of 2024, according to the United States Federal Reserve. Historically, United States - Contributions to Percent Change in Real GDP by Industry: Educational Services, Health Care, and Social Assistance reached a record high of 5.25000 in July of 2020 and a record low of -4.49000 in April of 2020. Trading Economics provides the current actual value, an historical data chart and related indicators for United States - Contributions to Percent Change in Real GDP by Industry: Educational Services, Health Care, and Social Assistance - last updated from the United States Federal Reserve on March of 2025.

Graph and download economic data for Government current expenditures: Health (G160271A027NBEA) from 1959 to 2023 about health, expenditures, government, GDP, and USA.

Health expenditure in the U.S. has been a hotly debated topic among political parties, especially on the verge of presidential elections. Health expenditures in the U.S. have been increasing over time and are projected to keep increasing. As of 2022, the U.S. spent a total of 4.4 trillion U.S. dollars on healthcare.

U.S. health expenditure in comparison

The U.S has some of the highest expenditures for health care in the world. With a total health spending of roughly 17 percent of the country’s GDP, the U.S. has far surpassed the country with the second highest health expenditure as a share of GDP, Germany. The United States, despite having a mixed method of healthcare financing and insurances, also has one of the highest shares of domestic governmental health expenditures.

U.S. health care payers

There are several different governmental and non-governmental agencies that are responsible for health care funding and payments in the United States. Currently, private insurance and Medicare are the two largest payers of U.S. health care. Direct health care costs are not the only things that these payers are responsible for. They may also be partly responsible for prescription drug costs. Again, private insurance and Medicare are the two largest payers of prescription drug costs in the U.S. Among all the payers of health care costs in the U.S., Medicare has experienced the highest level of health spending increases in recent years.

This statistic shows a forecast of the U.S. total national health expenditure from 2023 to 2032. For 2032, the total health expenditure of the United States is forecasted to reach some 7.7 trillion U.S. dollars.

Graph and download economic data for Real Gross Domestic Product: Health Care and Social Assistance (62) in the District of Columbia (DCHLTHSOCASSRQGSP) from Q1 2005 to Q3 2024 about DC, healthcare, social assistance, health, GSP, private industries, education, services, private, real, industry, GDP, and USA.

In 2021, the country with the highest share of health spending relative to its gross domestic product (GDP) in Latin America and the Caribbean was Cuba, with 14 percent. It was followed by Argentina, Brazil, El Salvador, Nicaragua, and Panama, with approximately 10 percent of its GDP spent on healthcare, each. Meanwhile, Haiti reported the lowest health spending relative to its GDP in the region that year, which reached the equivalent of around three percent.

In 2023, the United States had the highest per capita health expenditure among OECD countries. At that time, per capita health expenditure in the U.S. amounted over 13,432 U.S. dollars, significantly higher than in Switzerland, the country with the second-highest per capita health expenditure. Norway, Germany and Austria are also within the top five countries with the highest per capita health expenditure. The United States also spent the highest share of it’s gross domestic product on health care, with 16.5 percent of its GDP spent on health care services. Health Expenditure in the U.S. The United States is the highest spending country worldwide when it comes to health care. In 2022, total health expenditure in the U.S. exceeded four trillion dollars. Expenditure as a percentage of GDP is projected to increase to approximately 20 percent by the year 2031. Distribution of Health Expenditure in the U.S. Health expenditure in the United States is spread out across multiple categories such as nursing home facilities, home health care, and prescription drugs. As of 2022, the majority of health expenditure in the United States was spent on hospital care, accounting for a bit less than one third of all health spending. Hospital care was followed by spending on physician and clinical services which accounted for 20 percent of overall health expenditure.

In 2023, Mexico’s healthcare expenditure represented an estimated 5.7 percent of its gross domestic product (GDP), a decrease of 0.4 percentage points in comparison to 2020. This figure had remained relatively stable in previous years. In that year, Mexico's GDP amounted to approximately 1.8 trillion U.S. dollars. Mexico in a global contextHealthcare expenditure is comprised of insurance, research, facility provision, and all other expenses associated with public health. Mexico's spending on healthcare in relation to its GDP is staggeringly low compared to most OECD countries. The United States, for instance, allocated approximately 17 percent of its GDP to healthcare in 2023. Furthermore, Mexico had one of the lowest levels of per capita health expenditures worldwide that year, at 1,500 U.S dollars. This figure was equivalent to less than half of that reported by Chile, which spent 3,350 U.S. dollars per citizen on health. Health coverage in the North American countryIn 2021, around 56 percent of the Mexican population was covered under one of the country’s public health care programs. Another 46 percent was affiliated to public healthcare insurance. However, despite Mexico’s efforts and investment in healthcare, a significant share of their population is still considered vulnerable due to inadequate access to health services. According to a survey carried out in Mexico in 2020, around 43 percent of respondents in whose households there was at least one member that presented symptoms of an illness did not attend a medical consultation because there were no available appointments.

Graph and download economic data for Quantity Indexes for Real GDP: Private Industries: Educational Services, Health Care, and Social Assistance: Educational Services for United States Metropolitan Portion (QGMPEDCATUSMP) from 2001 to 2023 about metropolitan portion, healthcare, social assistance, quantity index, health, private industries, education, services, private, real, industry, GDP, and USA.